$70M pre-foreclosure filed at FiDi retail owned by Crown, Morgan Stanley fund
170 Broadway (Credit - Google)
The special servicer for bondholders invested in a $70 million loan secured by the retail condominium unit at 170 Broadway in the Financial District owned by Crown Acquisitions and a Morgan Stanley Real Estate Advisor fund, allege the debt is in default, and filed a pre-foreclosure action on Friday.
Midland Loan Services, the special servicer, filed the lawsuit in New York State Supreme Court on May 9, 2025. The borrower entity is 170 Broadway Retail Owner, LLC
In February, Crain’s reported the loan was sent to special servicing.
Court filings represent the position of one party and are not necessarily accurate or complete.
Case LINK
The retail condo has 16,135 square feet of built space according to a PincusCo analysis of city data. The city-designated market value for the property in 2022 is $31.1 million.
The Gap is the tenant in the location on a lease starting in February 2014 and running to 2030 with a renewal option. The parties settled a Covid-related rent-related lawsuit, 652732/2020 originally filed in 2020.
Crown Acquisitions, led by the Chera family, and the Morgan Stanley fund PPF Retail LLC, bought the condo unit in May 14, 2014 for $70.1 million from Carlyle Group, financed with a $52 million from United Overseas Bank. Then ten months later, on March 11, 2015, they upped the debt to $70 million originated by Citibank. The lender later securitized the loan into Commercial Mortgage Pass-Through Certificates, Series 2015-GC29 with $20 million and CGCMT 2015-GC29 with $50 million.
According to a 2023 prospectus unrelated to 170 Broadway, “PPF is a real estate core fund managed by Morgan Stanley Real Estate Advisors. The fund is located in New York, NY and invests across the United States and targets investments in the retail, multi-family, office and industrial sectors. As of March 31, 2022, Prime Property Fund managed 526 investments, with a total value of more than $44.4 billion in gross real estate assets.”
Direct link to the property’s ACRIS page.